Bank Indonesia Headquarters in Jakarta - Photo: Privacy

JAKARTA (TheInsiderStories) – Board governors of Bank Indonesia (BI) awaiting the announcement of the US’ Federal Reserves (Fed) before made monetary policy stance, said one official on Wednesday (12/09).

“We will monitor it and we will calibrate again,” BI Deputy Governor, Dody Budi Waluyo told reporters at his office.

As said by the Governor Perry Warjiyo, BI was still maintaining a strict monetary policy stance or hawkish stance. But, he added, in the future, the Bank will keep a close watch on domestic and global economic prospects to maintain stability.

On Thursday (13/09), Finance Minister Sri Mulyani Indrawati projected the average of Rupiah throughout 2018 is around 14,100 to 14,200 per US dollar. She added, the average Rupiah rate from January to Sept. 7 at Rp13,977 compared to the greenback.

The exchange rate projected by her, is higher than that assumption in the 2018 State Budget which amounted to Rp13,400.

Uno Reminds Government

A vice presidential candidate, Sandiaga Uno has reminded the Indonesian government on the Rupiah weakening against the US dollar. Today, the local currency

He said the government must focus on dealing with the weakening of the Rupiah exchange rate and not on spending more time in politics.

“We should not mix economics with politics. Just focus on the economy first, that is what we hope for,” Uno told Antara in Pekanbaru, Riau Province, on Tuesday (11/09).

Uno also expressed his concern over the weakening of the Rupiah, which will affect the company’s production costs, leading to the potential for termination of employment or layoffs. For this reason, the former deputy governor of Jakarta province called on the government to sit together with the businesses in addressing this phenomenon.

He reminded the government to start tightening belts and delay imports that were not needed. “Postpone dollar-based expenditures, delay the import of unnecessary goods, and encourage the use of local products,” added by Uno.

He even revealed that he had held a meeting with the former governor of Bank Indonesia, Agus Martowardojo, to discuss the resolution of economic problems in the next three to five years.

He hope is that the economy will be the center of the government attention. “We should stop ‘political bickering’ first and focus (on improving the economy). I do not see catalysts that can stabilize our economy in the next six to nine months. Therefore, we must unite,” Uno pointed out.

Uno and his partner for 2019 Presidential Election Prabowo Subianto will establish a special team that overseeing the current economic instability issue.

The team would take measures to cope with the economic turmoil. According to him, the team is aimed at encouraging the public unity in handling the country’s problems and preventing further depressed issues.

Therefore, it would enhance the public confidence towards the economy and job employment. He opined the economy issues, particularly faced by the middle and lower middle class, affected the public confidence towards job opportunities. They are lack of confidence and show pessimism on the matter.

The candidates’ special team is currently collecting data released by BI as their main sources, including the consumer confidence index on employment availability that displaying pessimism.

Email: linda.silaen@theinsiderstories.com

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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

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